Swicorp has launched “Swicorp Bawabat Makkah Real-estate Development Fund”, a Public, Closed-ended, Real Estate Investment Fund, Sharia’h compliant and approved by the Capital Market Authority of Saudi Arabia by order No. D/3/5/248/17 dated 26/4/1438 H.
The Fund size is SAR 1,353 million and duration is 3 years renewable for two periods (each period is one year long). The Fund aims to develop a strategic piece of land located in Makkah and sell the resulting serviced residential and commercial land plots, in line with Makkah’s accelerating expansion and Makkah real-estate market positive outlook within KSA Vision 2030. The Project Land measures approximately 1.7 million sqm and is entirely located within the Haram boundaries, near the Qur’an monument.
The Fund is managed by Swicorp, a leading investment bank providing asset management and other investment services across KSA and the Middle East. The Project will be developed by Bawabat Makkah Company, a subsidiary of Al Balad Al Amin Company for Development and Urban Regeneration (ABAM) which is owned by the Saudi Government. It is worth mentioning that ABAM is one of the main investors in the Fund with an in-kind contribution of SAR 400 million.
Subscription in the Fund is available for Saudi nationals as well as Saudi companies and investment funds through Swicorp Company (Fund Manager) or defined branches of Arab National Bank (Receiving Bank). The minimum subscription amount is SAR 50,000 per investor. The Fund closure date is expected to be 25/6/1439 H (13/3/2018 G), and the Fund Manager is allowed to close the Fund before this date upon raising the minimum targeted subscription amounts.
Swicorp manages a number of successful real estate investment funds in KSA, the Fund is considered an extension of Swicorp real estate expertise and a reflection of its vision in building and enhancing successful relationships with clients and investors through providing the best investment opportunities in KSA and the Middle East.